Question 1 (write 2 pages)

Management/Operations Case Analysis - Use the materials for the same case located in the Discussion Forum (Refer to question1) and consider the class discussion to write this paper.

You are the Director of Operations and are required to do the following:

1. Analyze the data and form an opinion of the current state of the organization (1 pages)
2. Based on the data, formulate a future forecast and suggest ways to improve the situation (1pages)

Question 2 (write 2 pages)

Review: write 2page Analysis Paper on What is Strategic Management? By Harris, Chen, Fairchild, Freeman, Venkataraman, and Mead

Use the items below as headings in your paper:

1. What are the main themes of the article/case?
2. What challenge, problem, or opportunities is the article/case attempting to respond to?
3. What are the solutions, resources, or answers provided?
4. How do these solutions, resources, or answers address strategic leadership explored in the course?
5. How will you, as a professional, integrate this learning into your own role as a leader and manager?

For the exclusive use of E. Asowo, 2021. UV4315 January 11, 2010 WHAT IS STRATEGIC MANAGEMENT? Corporate strategy is the pattern of decisions in a company that determines and reveals its objectives, purposes, or goals, produces the principal policies and plans for achieving those goals, and defines the range of business the company is to pursue, the kind of economic and human organization it is or intends to be, and the nature of the economic and noneconomic contribution it intends to make to its shareholders, employees, customers, and communities. —Kenneth Andrews1 All the classic definitions of strategy, of which this is one, highlight its complex nature.2 Strategic management encompasses several different sets of considerations whose relative emphasis by business strategists, consultants, and academic researchers has changed over time, as ideas have evolved about the application of competitive thinking to the collective enterprise of value creation.3 Through case discussion, we will highlight several of these considerations, ultimately focusing on the use of corporate and business strategy to create value, which will be one of your primary roles as a manager and leader. 1 Kenneth R. Andrews, The Concept of Corporate Strategy (New York: Dow Jones-Irwin, 1971). For examples of foundational work in strategic management, see Andrews; Michael E. Porter, Competitive Strategy (New York: The Free Press, 1980); H. Igor Ansoff, Corporate Strategy (Columbus, OH: McGraw-Hill, 1965) and Strategic Management (New York: Macmillan, 1979); and Alfred D. Chandler, Strategy and Structure (Cambridge, MA: MIT Press, 1962). 3 For a discussion of the evolution of the central ideas in business strategy, see Pankaj Ghemawat, “Competition and Business Strategy in Historical Perspective,” Business History Review 76 (Spring 2002): 37–74. For an explanation of the different schools of thought in strategy, see also Henry Mintzberg and Joseph Lampel, “Reflecting on the Strategy Process,” MIT Sloan Management Review (Spring 1999): 21–30. 2 This note was prepared by Ming-Jer Chen, Leslie E. Grayson Professor of Business Administration; Gregory B. Fairchild, Associate Professor of Business Administration; R. Edward Freeman, Elis & Signe Olsson Professor of Business Administration; Jared D. Harris, Assistant Professor of Business Administration; and S. Venkataraman, MasterCard Professor of Business Administration, with additional editing and revision by Jenny Mead, Senior Ethics Research Associate. Copyright ? 2009 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. To order copies, send an e-mail to sales@dardenbusinesspublishing.com. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Darden School Foundation. This document is authorized for use only by Eniola Asowo in FA21-B-MGT160-1-1 taught by Ly-Huong Pham, Golden Gate University from Sep 2021 to Nov 2021. For the exclusive use of E. Asowo, 2021. -2- UV4315 What does such a role involve? What does “strategy” mean in a business setting? First, strategy is an organizing process that involves both formulation and implementation. Strategic management cannot be conceived as mere operational effectiveness alone, nor as just armchair theorizing and strategic planning; both are important aspects of strategy, and neither is a sufficient conception of strategic management without the other.4 Strategic management is dynamic, involving both content and process, planning and action. Moreover, strategy can be emergent and is often the realization of both intentional strategy formulation and, as the organization acts on those plans, tactical responses to the unexpected. Second, strategic management involves considerations and constraints that originate both inside and outside the firm. Managers must not only be clear about both the firm’s distinguishing features and its organizational objectives, but also be able to marshal its resources and leverage its capabilities to achieve those objectives. Who are we? How do we aim to create value? What capabilities do we need to possess in the future? How will we develop them? A variety of external forces—technological, economic, and competitive—will also affect the firm’s strategy, including the increased global reach of firms, the multinational distribution of labor pools and supply chains, and the worldwide interest and influence of stakeholders of all types. Moreover, in today’s world, the speed and ease of access to information about corporate behavior greatly accentuates the impact of such forces. As such, strategic management requires clear thinking about the economic, technological, and societal environment in which the organization operates and an acute consideration of the activities and capabilities of one’s competitors. Third, strategic management is essentially an integrative exercise. The functional areas of finance, marketing, accounting, operations, and human resources often apply specific paradigms to specific business problems and considerations, usefully setting aside complexity in favor of a sharp focus on various disciplinary considerations. In contrast, strategy is about bringing all the underlying values of these disciplines back together. In practice, business managers do not typically encounter challenges as isolated, atomistic problems with narrow disciplinary implications; rather, they navigate business issues through a whole range of complex, crossdisciplinary considerations. Strategic management is also integrative, as Andrews suggests, insofar as it enables value creation for all stakeholder groups—financiers, employees, customers, suppliers, and communities—and not just one particular stakeholder. Viewed through the integrative lens of 4 Regarding the former, see Michael E. Porter, “What is Strategy?” Harvard Business Review, November/December 1996, 61–78; for the latter, see Gary Hamel and C. K. Prahalad, “Strategic Intent,” Harvard Business Review, May/June 1989, 63–76, or Henry Mintzberg and Alexandra McHugh, “Strategy Formulation in an Adhocracy,” Administrative Science Quarterly, June 1985, 160–97. This document is authorized for use only by Eniola Asowo in FA21-B-MGT160-1-1 taught by Ly-Huong Pham, Golden Gate University from Sep 2021 to Nov 2021. For the exclusive use of E. Asowo, 2021. -3- UV4315 strategy, commonly invoked axioms such as “maximizing shareholder returns” can be useful to the extent that they imply value creation for financiers by way of creating value for key stakeholders—that is, creating goods customers want, work environments that energize employee contributions, and so on. On the other hand, if creating value for shareholders is naïvely deemed unrelated to creating value for customers or employees or communities, then using “maximizing shareholder returns” as a firm’s formal objective will provide little strategic direction.5 Strategic management involves aligning stakeholder interests, putting these considerations together so as to create value in an integrative and sustainable way. However, tradeoffs must often be made, and a strategist can face difficult choices; clear thinking and sound judgment about creating long-lasting value, therefore, require an integrative enterprise perspective. Analytical frameworks and tools grounded in both theory and practice can help, but any device used to analyze strategic problems will prove insightful in some ways, but blunt in others; hence, a strategist’s toolkit contains many tools. The most difficult strategic tradeoffs are often more about temporal concerns than any supposed conflict among stakeholder interests; strategic long-term investments almost always decrease short-term performance. In addition, strategy cascades through an organization; what constitutes strategic management at one level may be merely tactical at a higher one. Understanding strategic management is challenging but rewarding. Effective strategy is integral to exceptional business leadership. 5 In fact, such objectives can engender unintended problems. See Sumantra Ghoshal, “Bad Management Theories are Destroying Good Management Practices,” Academy of Management Learning & Education 4, no. 1 (2005): 75–91; and Fabrizio Ferraro, Jeff Pfeffer, and Robert Sutton, “Economics Language and Assumptions: How Theories Can Become Self-Fulfilling,” Academy of Management Review 30, no. 1 (2005): 8–24. This document is authorized for use only by Eniola Asowo in FA21-B-MGT160-1-1 taught by Ly-Huong Pham, Golden Gate University from Sep 2021 to Nov 2021.
 

Strategic Management 

Question 1

Samsung's Recall

According to the reports by the U.S Consumer Product Safety Commission, the production of lithium-ion batteries by Samsung manufacturers poses a danger to the consumers who purchased the Samsung Note 7 Galaxy. The lithium-ion batteries on the Note 7 mobile phones explode and cause fires when they are charged. The phones do not promote consumer safety because they can cause a fire incident and kill the consumers. The problem affected the sales of 2.5 million made on the purchase of the Note 7 phones (Mastroianni, 2017). The commission divided a plan to promote the safety of the consumers who had purchased the Note 7 phones by advising them to stop using the phones because they were dangerous as they could easily catch fire when they overheat. Passengers who had also purchased the phones were discouraged from using the phones on planes since they could threaten the lives of others by causing an explosion. Failing to test the effectiveness of the phones before releasing them in the market might have caused the problem.

As a result of the reports given by the U.S Consumer Product Safety Commission, the manufacturers of Samsung had to do something about it to ensure they promote the safety of their consumers. The company decided to announce to the consumers of the Note 7 phones to return the phones to where they had bought them and get a replacement. The consumers had the opportunity to replace their Note 7 phones with Samsung Galaxy S7 or Samsung Galaxy S7 Edge. It was the only option the company could do to protect its consumers and promote customer loyalty. It was also a strategy to ensure that the company does not lose its customers due to their mistake of producing harmful products in the market. The company also created a new policy of issuing their consumers who participate in the replacement process of Samsung Note 7 in the market with a $25 gift card to ensure that they eradicate the phone in the market (Mastroianni, 2017).

The replacement of the phones made the company incur losses, but it had no other alternative because the safety of its customers is the priority of the company. The commission also enhanced the goal of the company to eradicate the Samsung Note 7 phones in the market. Thee eradication was by allowing the consumers to report any incidents of lithium-ion batteries at their site on. Samsung also advised their customers to call the retailers that sold them the phones to get new replacements or contact directly through their contact 1-800-SAMSUNG.

Future Forecast

Samsung manufacturers can prevent such incidents by ensuring that their products released in the market are safe and effective. The company can work strictly with its suppliers and distribute quality products for their manufacturing process. Substandard products such as lithium-ion batteries are more harmful to consumers, and the company should not accept such products. Suppliers can supply defective products at an affordable price for the company to make profits. The company should ensure that its suppliers are quality products at a minimal cost to generate profit. Hiring specialists who are more experienced in technology can also be a solution to prevent the company from making such a mistake. The company needs to test the effectiveness of its products before they release them into the market to avoid such an incident from happening. It could result in the company losing its customers.

Proper communication channels need to be established in the company to ensure that it deals with a problem effectively when it occurs. The communication channel will also enable the company to advise its customers on what they can do to promote their safety. Customer safety should be the priority of the company. The company needs to own up its mistake whenever they have any problem with their consumers. It creates loyalty to its customers and also shows that the company is remorseful for its mistake. It also makes the customers know that the company values them and promotes their clients' safety and well-being. Communication channels enable the company to communicate within its internal and external environment. A thriving outlined communication strategy in the company will help during a crisis such as this one that resulted from lithium-ion batteries. Thus, Samsung manufacturers should ensure that they test their products first before launching them in the market for customers to purchase them.

Question 2 

1. What are the main themes of the article/case?

The theme highlighted in the article is strategic management. Strategic management involves formulating and implementing operational plans for the administration to increase its effectiveness in decision-making. Strategy is also affected by external factors, such as competition, economy, and technology (Chen et al., 2010). Both the internal and external factors within the organization are vital in developing strategies for the management. The article looks at strategic management as an integrative exercise because it borrows from other disciplines such as marketing, finance, Accounting, Human Resource Management, and Operations Management to function effectively. The article also highlights the challenging factors that are involved when developing strategic management. Developing a strategy for the organization may be difficult, but it is rewarding because it enhances outstanding leadership.

2. What challenge, problem, or opportunities in the article/case attempting to respond to?

The article tries to address the challenge of creating value in the organization while at the same time trying to maximize the shareholder's wealth. Creating value in the organization requires well-thought decisions by the managers, which can sometimes be challenging. There are strategic tools applicable for managers to help them solve problems in developing a strategy to create its value (Chen et al., 2010). Despite the challenges involved in understanding strategic management, managers must understand it to develop exceptional leadership qualities. Strategic management is an integrative exercise that involves all stakeholders in the organization. It takes into consideration the employees, the customers, suppliers, and the community. Therefore, it is easy for the managers to ensure that they maximize the wealth of the shareholders.

3. What are the solutions, resources, or answers provided?

In case of conflicts caused due to the different interests of the shareholders, adjustments are made by the managers. The reason is to make an effective decision that will create value in the organization. The managers use some tools to solve problems resulting from strategic management (Chen et al., 2010). The tools help to analyze the issues and look for a possible solution to the situation's outcome. Strategic management also acts as a tool in ensuring that the managers align the interest of their stakeholders to avoid conflicts arising within the organization. Aligning the interests of the stakeholders promotes the creation of value within the organization.

4. How do these solutions, resources, or answers address strategic leadership explored in the course?

Strategic management is an integrative exercise that enables the manager to navigate various disciplines to solve the different problems encountered in their organizations. Managers can guide and find solutions through a wide range of considerations and implications through the multiple domains. External factors such as technology affect the strategy of a firm. Strategic management ensures that the firm considers all these external factors to remain competitive (Chen et al., 2010). All stakeholders in the organization's interest are upheld through enhancing strategy development in the organization. Managers ensure they maintain and align the interest of the stakeholders to promote the firm's effectiveness. It also enables the firm to prevent the conflicting interests of different stakeholders. Different stakeholders are put into consideration and not just one stakeholder.

5. How will you, as a professional, integrate this learning into your role as a leader and manager?

As a manager, I will ensure that I put the interests of all stakeholders at hand to create value within my organization. All the stakeholders affected by the decisions made in the organization provide that the shareholder's wealth is maximized. It also promotes the well-being of employees and ensures that customers are delighted with the organization. In areas with conflicting interests between different stakeholders, I will encourage the management to make adjustments to ensure that the organization runs effectively (Chen et al., 2010). Each management level will also use different strategies because using one approach may be challenging from one management level to another. As a manager, I will create a culture where the employees are free to channel their ideas to help me run the organization effectively and ensure that the strategy implementation process is effective.

Outline for question 1

Introduction

According to the reports by the U.S Consumer Product Safety Commission, the production of lithium-ion batteries by Samsung manufacturers poses a danger to the consumers who purchased the Samsung Note 7 Galaxy.

Thesis Statement

Failing to test the effectiveness of the phones before releasing them in the market might have caused the problem.

First Paragraph Description

• Replacement process of Samsung

Second

• Reporting from customers

Third

• Suppliers working together with Samsung

Fourth

• Communication channels

Restatement of the Thesis Statement

Samsung manufacturers should ensure that they test their products first before launching them in the market for customers to purchase them.

Conclusion

Proper communication channels need to be established in the company to ensure that it deals with a problem effectively when it occurs.

Outline for question 2

1. What are the main themes of the article/case?

The theme highlighted in the article is strategic management.

2. The article tries to address the challenge of creating value in the organization while at the same time trying to maximize the shareholder's wealth.
3. What are the solutions, resources, or answers provided?

In case of conflicts caused due to the different interests of the shareholders, adjustments are made by the managers.

4. How do these solutions, resources, or answers address strategic leadership explored in the course?

Strategic management is an integrative exercise that enables the manager to navigate various disciplines to solve the different problems encountered in their organizations.

5. How will you, as a professional, integrate this learning into your role as a leader and manager?

As a manager, I will ensure that I put the interests of all stakeholders at hand to create value within my organization